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Germany to Hold 2027 CO2 Price at 2026 Level After EU Delay

The decision aims to provide planning certainty by aligning the national scheme with the EU’s revised timeline.

Overview

  • Coalition negotiators Andreas Jung (CDU) and Esra Limbacher (SPD) agreed to extend the 55–65 €/tonne auction corridor to 2027.
  • The Environment Ministry is examining changes to the Brennstoffemissionshandelsgesetz to make the extension legally binding.
  • Germany’s fuel and heating CO2 price will shift to market-based auctions within the corridor starting in 2026.
  • ADAC estimates a €60/tonne price would add about €0.17 per litre to petrol and €0.19 to diesel in 2026, with oil-heated homes paying over €400 more per year and gas-heated homes about €300, while revenues flow into the Climate and Transformation Fund.
  • Without the agreement, household CO2 prices could have risen toward industry levels of roughly €75–80 per tonne before the EU-wide system launches in 2028.